USCB Financial (NASDAQ:USCB) & MetroCity Bankshares (NASDAQ:MCBS) Head to Head Analysis

MetroCity Bankshares (NASDAQ:MCBS) and USCB Financial (NASDAQ:USCB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings for MetroCity Bankshares and USCB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	0	0	2.00
USCB Financial	0	1	2	1	3.00

MetroCity Bankshares currently has a consensus target price of $34.00, suggesting a potential downside of 0.09%. USCB Financial has a consensus target price of $16.38, suggesting a potential downside of 16.37%. Given MetroCity Bankshares’ higher possible upside, equities analysts plainly believe MetroCity Bankshares is more favorable than USCB Financial.

Insider and Institutional Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 61.3% of USCB Financial shares are held by institutional investors. 27.5% of MetroCity Bankshares shares are held by insiders. Comparatively, 48.5% of USCB Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

MetroCity Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. USCB Financial pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. MetroCity Bankshares pays out 39.7% of its earnings in the form of a dividend. USCB Financial pays out 19.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

MetroCity Bankshares has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, USCB Financial has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares MetroCity Bankshares and USCB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	25.54%	15.09%	1.66%
USCB Financial	15.12%	10.79%	0.87%

Valuation & Earnings

This table compares MetroCity Bankshares and USCB Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$211.03 million	4.08	$51.61 million	$2.32	14.67
USCB Financial	$75.39 million	5.10	$16.55 million	$1.03	19.01

MetroCity Bankshares has higher revenue and earnings than USCB Financial. MetroCity Bankshares is trading at a lower price-to-earnings ratio than USCB Financial, indicating that it is currently the more affordable of the two stocks.

Summary

MetroCity Bankshares beats USCB Financial on 9 of the 17 factors compared between the two stocks.

About MetroCity Bankshares

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that engages in the provision of banking products and services in the United States. It offers customary banking services, such as consumer and commercial checking accounts, savings, and money market accounts, as well as certificates of deposit. The company also provides commercial and consumer loans, including single family residential loans; construction and development, and owner and non-owner occupied commercial real estate loans; letters of credit; and commercial and industrial loans, residential mortgage loans, and SBA loans. In addition, it offers online banking services, which include access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions, such as remote check deposit with mobile bill pay; and automated teller machines and telephone banking services. Further, it provides debit cards for checking customers, direct deposits, and cashier's checks; treasury management services, including wire transfer, automated clearing house, and stop payments services; and cash management deposit products, such as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About USCB Financial

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.